Individual Investments into Stocks, Bonds and Mutual Funds Drop; Interest in Alternatives Grows

December 11, 2018

Ninety percent of high-net-worth investors are willing to invest in alternative investments, according to recent Millennium Trust Company survey

OAK BROOK, IL - December 11, 2018 – High-net-worth investors have slowed their investments into stocks, bonds and mutual funds and instead are exploring opportunities in private equity, real estate and hedge funds, according to the latest investor survey from Millennium Trust Company, LLC (“Millennium Trust”), a leading retirement and institutional custody services provider to advisors, financial institutions, businesses and individuals.

The survey, which asked 500 high-net-worth investors about their current holdings and future investment strategy, showed that less than half of all participants, or 47 percent, invested in individual stocks in the past year – a 10 percent decline compared to last year.

The drop was even more pronounced when it came to individual foreign stocks, where new investments dropped almost 16 percent versus last year. Investments into individual bonds also declined 8.6 percent over the same period in 2017. Instead, investors noted their continued interest in nontraditional investments, with 90 percent of respondents willing to invest in alternative assets.

“In spite of this historic bull market, we are seeing more investor interest in diversifying portfolios through alternative investments,” said Gary Anetsberger, Chief Executive Officer. “Technology is fueling a wider range of opportunities for investors and giving more individuals access to sought-after asset classes like private equity, real estate and hedge funds. There is also a growing interest in private debt, infrastructure and natural resources investments.”

Almost one-third of respondents reported investing in real estate, with 73 percent of those investing in single-family rental properties. Of those surveyed, 20 percent reported that private equity is still a core holding, and 14.6 percent reported investing in hedge funds. 

“We have created and are continuously improving the Millennium Alternative Investment Network® (MAIN®) as a resource for investors and advisors interested in exploring different alternative investment options today.”

The educational resources and research tools available on MAIN cover a breadth of alternative asset classes, ranging from private equity and hedge funds to crowdfunding and multi-strategy investments. Interested investors can open an account with Millennium Trust, research and access investments through MAIN, and invest through a simple, streamlined process. For more information, visit www.mtrustcompany.com/main.

About Millennium Trust Company®

Millennium Trust Company is a trusted leader in specialized retirement and custody services, empowering clients with unmatched service, access to a wide range of custody solutions and expertise they can count on. Whether it's the custody of alternative assets, investment accounts or retirement funds, Millennium Trust is uniquely qualified to support our clients' success.

Millennium Trust Company performs the duties of a directed custodian, and as such does not provide due diligence to third parties on prospective investments, platforms, sponsors or service providers and does not sell investments or provide investment, legal, or tax advice. For more information about Millennium Trust Company, follow us on Twitter and LinkedIn.

Survey Data Source: August 2018 Millennium Trust survey of 500 individuals age 30 and over with household income of $200,000+ who have invested in stocks, bonds or commodities through an IRA or SEP-IRA.
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Kevin Dinino
KCD PR

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Kevin@kcdpr.com